An Investigation of the Relationship Between Corporate Brand Value and Future Stock Returns in the Listed Companies in Tehran Stock Exchange (TSE)

This paper examines the relationship between financial constraints and the stock returns explaining the pricing of stock through financially constrained and unconstrained firms in Pakistan. Three proxies; total assets, tangible to total assets and cash holding to total assets ratios) have been used for financial constraints and the study tried to investigate that either the investors are compensated for taking the extra risk or not in Pakistan Stock Exchange (PSX). We find that the financially constrained firms don’t earn higher returns when their capital structure is heavy with liquid assets and their cash flows are more than the unconstrained firms in PSX. Moreover, the time series results showed that the risk-adjusted returns of the most constrained firms give the mix and somewhat negative and significant and insignificant results for the Pakistani firms listed in PSX sorted based on tangible to total assets and Cash holding to total asset ratios. Keywords: Asset Pricing, Financial constraints, risk-adjusted performance of portfolios

Download Full-text

Relationship between corporate governance and audit switching: Iranian evidence

International Journal of Law and Management ◽

10.1108/ijlma-02-2016-0024 ◽

2017 ◽

Vol 59 (5) ◽

pp. 673-686

Author(s):

Mahdi Salehi ◽

Ali Asgar Alinya

Keyword(s):

Corporate Governance ◽

Design Methodology ◽

Stock Exchange ◽

Listed Companies ◽

Panel Analysis ◽

Cross Sectional ◽

Content Type ◽

Effective Factors ◽

Dependent Variables ◽

The Relationship

Purpose This paper aims to investigate the relationship between corporate governance and auditors switching of listed companies on the Tehran Stock Exchange. Design/methodology/approach To achieve the objectives of this study, 12 hypotheses developed which and tests the relationship between corporate governance and selecting and switching auditors in Iran during 2008-20014 by selecting 116 listed companies on the Tehran Stock Exchange. To test the hypotheses, the cross-sectional time-series nature of research variables data, panel analysis is used. Also, to investigate the relationship between independent and dependent variables in each year, the logistic regression is used. Findings The results of the study indicate that there is a weak relationship between corporate governance auditors switching. Therefore, it could be concluded that there are some other effective factors on which selecting and switching auditors in studied companies are more dependent. Originality/value The current study is almost the first study which has been conducted in Iran, so the results of the study may be beneficial to the Iranian conditions as well as other developing countries.

Download Full-text

PENGARUH PENERBITAN SUKUK TERHADAP REAKSI PASAR (SURVEY TERHADAP PERUSAHAAN-PERUSAHAAN YANG MENERBITKAN OBLIGASI SYARIAH YANG TERDAFTAR DIBURSA EFEK INDONESIA SELAMA TAHUN 2015)

Jurnal Ilmiah Mahasiswa Ekonomi Akuntansi ◽

10.24815/jimeka.v4i3.12583 ◽

2019 ◽

Vol 4 (3) ◽

pp. 496-503

Author(s):

Mulya Iskandar ◽

Ridwan Ridwan

Keyword(s):

Stock Returns ◽

Abnormal Return ◽

Research Method ◽

Quantitative Research ◽

Stock Exchange ◽

Secondary Data ◽

Cumulative Abnormal Return ◽

Market Reactions ◽

Independent Variables ◽

The Relationship

This study aims to determine how the influence of a sukuk instrument issuance on market reactions listed on the Indonesia Stock Exchange (IDX) during 2015. The research method used in this study is quantitative research. Quantitative research contains a relationship between cause and effect. The type of data used is secondary data, data collection used by the author is to know the relationship between two or more variables. The object to be examined in this study is the total value and rating of the issuance of Islamic bonds (sukuk) companies as independent variables and cumulative abnormal return shares of companies that issue Islamic bonds (sukuk) listed on the Indonesia Stock Exchange in 2015. The results of this study indicate the value of sukuk bond issuance and sukuk bond issuance ratings jointly affect stock returns. The value of issuing sukuk bonds partially affects stock returns and the rating of bond issuance has an effect on return.

Download Full-text

Systematic illiquidity, characteristic illiquidity, and stock returns: Timeseries analysis

International Journal of ADVANCED AND APPLIED SCIENCES ◽

10.21833/ijaas.2022.02.008 ◽

2022 ◽

Vol 9 (2) ◽

pp. 72-80

Author(s):

Soltane et al. ◽

Keyword(s):

Emerging Markets ◽

Stock Returns ◽

Stock Prices ◽

Stock Price ◽

Stock Exchange ◽

Systematic Risk ◽

Timeseries Analysis ◽

The Relationship

The objective of this research is to investigate the relationship between illiquidity and stock prices on the Tunisian stock exchange. While previous researches tended to focus on one form of illiquidity to examine this relationship, our study unifies three forms of illiquidity at the same time. Indeed, we simultaneously consider illiquidity as systematic risk, as a characteristic of the market, and as a characteristic of the stock. The aggregate illiquidity of the market is the average of individual stock illiquidity. The illiquidity risk is the sensitivity of the stock price to illiquidity shocks. Shocks of market illiquidity are estimated by the innovations in the expected market illiquidity. Results show that investors on the Tunisian stock exchange do not require higher returns when they expect a rise of market illiquidity, whereas investors on U.S markets are compensated for higher expected market illiquidity. In addition, shocks of market illiquidity provoke a fall in stock prices of small caps, while large caps are not sensitive to market illiquidity shocks. This differs slightly from results based on U.S. data where illiquidity shocks reduce all stock prices but most notably those of small caps. Robustness tests validate our findings. Our results are consistent with previous studies which reported that the “zero-return” ratio predicts significantly the return-illiquidity relationship on emerging markets.

Download Full-text

Relevance of Corporate Social Responsibility to Companies During Turbulent Economic Times: A Survey of Zimbabwe Stock Exchange Listed Companies

Business and Management Studies ◽

10.11114/bms.v7i2.4924 ◽

2021 ◽

Vol 7 (2) ◽

pp. 1

Author(s):

Vusumuzi Sibanda ◽

Imelda Sekai Shoko ◽

Ruramayi Tadu

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Stock Exchange ◽

Listed Companies ◽

Chi Square ◽

Business Survival ◽

Csr Strategies ◽

Turbulent Times ◽

Corporate Social ◽

The Relationship

Corporate Social Responsibility (CSR) has remained topical and contentious as various schools of thought are put forward on its relationship to cost versus profitability for businesses. This study explored the relevance of CSR and its effect on the survival of businesses during an economic meltdown in Zimbabwe. The study purposively sampled 31 companies that are listed on the Zimbabwe Stock Exchange and have sound CSR programmes. A total of 93 questionnaires were administered and a Chi-square was conducted to test and establish the relationship between CSR strategies and business survival. The study concluded that companies with CSR strategies had a higher chance of surviving during turbulent times. Following the findings of the study, it is recommended that government comes up with CSR policies for different industries and that organisations continue investing in CSR especially in times of economic challenges.

Download Full-text

Oil price effect on sectoral stock returns: A conditional covariance and correlation approach for Mexico

Revista Mexicana de Economía y Finanzas ◽

10.21919/remef.v16i1.571 ◽

2020 ◽

Vol 16 (1) ◽

pp. 1-15

Author(s):

Rodrigo A. Morales Fernández Rafaelly ◽

Roberto J. Santillán-Salgado

Keyword(s):

Stock Returns ◽

Stock Exchange ◽

Spillover Effect ◽

Oil Prices ◽

Oil Price ◽

Price Effect ◽

Stock Market Performance ◽

Original Contribution ◽

Bivariate Garch Model ◽

The Relationship

This paper analyzes the relationship between the volatility of oil price and selected sectoral stock returns in Mexico (industrials, materials, financials and consumer discretionary) by implementing a Diagonal VECH-type bivariate GARCH model in order to estimate conditional covariances and correlations. The econometric results suggest that there exists a statistically significant relationship between sector indices, as well as between Mexico’s aggregate stock exchange returns, and variations in oil prices. Conditional correlations suggest that during most of the analyzed period, the relationship between oil price fluctuations and sectoral stock returns is positive. The recommendation, supported by these results, is that investors should take into consideration the interaction between the analyzed variables in order to generate more robust risk-hedge strategies. An important limitation for this work is information availability at sector level in the country. The original contribution of this paper lies mainly in the analysis of the influence of oil prices over sectoral indices of the Mexican Stock Exchange. These results provide more support to the current that suggests that a price increase in oil has a direct spillover effect on stock market performance.

Download Full-text

A new look at the meeting clustering effect

Review of Behavioral Finance ◽

10.1108/rbf-03-2021-0042 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Ángel Pardo ◽

Eddie Santandreu

Keyword(s):

Stock Returns ◽

Stock Exchange ◽

Abnormal Returns ◽

Relevant Information ◽

Investor Attention ◽

Content Type ◽

Potential Link ◽

Clustering Effect ◽

Trading Volumes ◽

The Relationship

PurposeThe study aims to test the existence of a meeting clustering effect in the Spanish Stock Exchange (SSE).Design/methodology/approachThis paper studies the relationship between the clustering of annual general meetings and stock returns in the SSE. A multivariate analysis is carried out in order to analyse the relationship between monthly returns and the clustering of general meetings in the SSE.FindingsThe authors show that meeting clustering exists and that some months exhibit significant and positive additional returns related to the holding of ordinary or extraordinary general meetings.Research limitations/implicationsThe authors have explored some possible explanations for the meeting clustering effect, such as a potential link with the “Halloween” effect or the presence of higher-than-normal levels of volatility, trading volumes or investor attention. However, none of these can explain the meeting clustering effect that emerges as a new anomaly in the SSE.Practical implicationsThe authors have documented significant and positive abnormal returns in some months that coincide with the holding of general meetings. Therefore, the holding of ordinary and/or extraordinary meetings in some months involves the release of relevant information for investors.Originality/valueThis study complements the financial literature because it is focused on the clustering of meetings and its effect on a stock market whose legal order is based on civil law. This fact allows us to shed new light on meeting clustering and its effect on other types of markets.

Download Full-text

The relationship between audit components and audit expectation gap in listed companies on the Tehran stock exchange

Journal of Financial Reporting and Accounting ◽

10.1108/jfra-12-2018-0115 ◽

2019 ◽

Vol 18 (1) ◽

pp. 199-222 ◽

Cited By ~ 1

Author(s):

Mahdi Salehi ◽

Fariba Jahanbin ◽

Mohammad Sadegh Adibian

Keyword(s):

Regression Model ◽

Multiple Regression ◽

Stock Exchange ◽

Audit Fees ◽

Listed Companies ◽

Multiple Regression Model ◽

Content Type ◽

Expectation Gap ◽

Audit Firms ◽

The Relationship

Purpose The expectation gap between auditors and users has recently been the topic of many controversies. This paper aims to evaluate the relationship between auditor’s characteristics and audit expectation gap among information users in listed companies on the Tehran stock exchange market. In other words, the study attempts to find whether there is a significant relationship between audit components and the audit expectation gap or not. Design/methodology/approach The multiple regression model is used to test the hypotheses. Research hypotheses are tested using a sample of 78 listed companies on the Tehran stock exchange during 2012-2016, by using integrated data technique of the multiple regression model. Findings The findings show that standard audit fees are not significantly associated with the audit expectation gap. Furthermore, audit fees are negatively associated with the audit expectation gap, which provides that allocated audit price in financial statements gives useful information for external and internal individuals. Predictably, it is recommended that audit opinion significantly determines the level of the audit expectation gap. The authors also find that the independence of the director boards and audit committee members fulfill the expectation gap of individual users. Moreover, finding the negative impact of audit firms ranking on the expectation gap, supports the idea of higher ranked audit firms provide high quality services, and consequently, more reliable information. Finally, the results show that the audit record is positively associated with the audit expectation gap. Originality/value As all recent studies on the expectation gap were qualitative, the present study is the first paper, which measures the expectation gap quantitatively through the statistical method.

Download Full-text

Adaptive Market Hypothesis: Evidence from the Vietnamese Stock Market

Journal of Risk and Financial Management ◽

10.3390/jrfm12020081 ◽

2019 ◽

Vol 12 (2) ◽

pp. 81 ◽

Cited By ~ 5

Author(s):

Dzung Phan Tran Trung ◽

Hung Pham Quang

Keyword(s):

Stock Market ◽

Stock Returns ◽

Stock Exchange ◽

Ho Chi Minh City ◽

Stock Exchanges ◽

Ratio Test ◽

Time Varying ◽

Variance Ratio ◽

Variance Ratio Test ◽

The Relationship

This paper aims to test the adaptive market hypothesis in the two main Vietnamese stock exchanges, namely Ho Chi Minh City Stock Exchange (HSX) and Hanoi Stock Exchange (HNX), by measuring the relationship between current stock returns and historical stock returns. In particular, the tests employed are the automatic variance ratio test (“AVR”), the automatic portmanteau test (“AP”), the generalized spectral test (“GS”), and the time-varying autoregressive (TV-AR) approach. The empirical results validate the adaptive market hypothesis in the Vietnamese stock market. Furthermore, the results suggest that the evolution of HSX has served as an important factor of the adaptive market hypothesis.

Download Full-text